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Related Flashcards
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Cards In This Set
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Perfect competition
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Market structure in which a large number of firms all produce the same product and no single seller controls supply or prices
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Commoditiy
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Product, such as petroleum or milk, that is considered the same no matter who produces or sells it
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Barrier to entry
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Any factor that makes it difficult for a new firm to enter a market
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Imperfect competition
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market structure that fails to meet the conditions of perfect competition
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Start-up costs
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Expenses a new business must pay before it can begin to produce and sell goods
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Monopoly
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Market in which a single seller dominates
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Economies of scale
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Factors that cause a producer's average cost per unit to fall as output rises
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Natural monopoly
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Market that runs most effieciently when one large firm supplies all of the output
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Government monopoly
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Monopoly created by the government
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Patent
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License that gives the inventor of a new product the exclusive right to sell it for a specific period of time
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Franchise
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Contract that gives a simple firm the right to sell its goods within an exclusive market
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License
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Government issued right to operate a business
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Price discrimination
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Division of consumers into groups based on how much they will pay for a good
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Market power
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ability of a company to control prices and total market output
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Monopolistic competition
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Market structure in which many companies sell products that are similar but not identical
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